Living in America’s Fringe Economy


Millions of Americans live on the margins of the American economy, depending on the likes of payday lenders and pawnshops, who charge excessive interest rates and superhigh fees for their services.

The term "fringe economy" refers to a range of businesses that engage in financially predatory relationships with low-income or heavily indebted consumers by charging excessive interest rates, superhigh fees, or exorbitant prices for goods or services. Some examples of fringe economy businesses include payday lenders, pawnshops, check-cashers, tax refund lenders, rent-to-own stores, and "buy-here/pay-here" used car lots. The fringe economy also includes credit card companies that charge excessive late payment or over-the-creditlimit penalties; cell phone providers that force less creditworthy customers into expensive prepaid plans; and subprime mortgage lenders that gouge prospective homeowners.

http://www.alternet.org/workplace/45813/

Posted: Fri - December 29, 2006 at 01:32 PM          

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